Entrepreneurship plays a vital role in the growth of the U.S. labor market. The number of jobs created from startups peaked in the late 1990s before declining steadily through the first 10 years of the 2000s.1 However, from the ashes of the recession comes a phoenix of entrepreneurship.
In a recent study, 66 percent of American millennials reported wanting to start their own businesses.2 Admittedly, one of the best times to take risks is when you’re young and have little to lose, but inexperience and lack of capital make it tough to get a business off the ground. However, today’s “gig,” “on-demand,” online economy is highly conducive for startups. Recent estimates project the number of people working these types of independent jobs will rise to 7.6 million by 2020 — up from 3.2 million Americans today.3
One major question budding entrepreneurs must answer is, “what do I want to be when I grow up?” Youth may be the time to take some risks, but few young adults have identified the means by which they intend to make their fortune and mark in the world. Alas, that sage advice to “do what you love” can take some time to figure out; many college grads don’t know what that is yet.4
While out in the workforce gaining experience, their entrepreneurial efforts may span the range of freelance writing and graphic design to starting their own house cleaning, moving, landscaping or childcare business.5
While jobs like this are popular starter options for people just entering the working world, they can also be attractive to recent retirees looking to stay busy. The appeal to both demographics is that they can make a little supplemental income without the strict, 40-hour-a-week schedule.
For those taking on the responsibility of a startup company, the environment is promising. Today’s top five industries for startups are technology services, advertising and marketing, business products and services, health and software. Fortunately, today’s young companies are growing fast, with more companies reaching 50+ employees within the first five years and new firms have added about 200,000 more jobs to the economy than last year.6
Content prepared by Kara Stefan Communications.
1 U.S. Bureau of Labor Statistics. April 28, 2016. “Entrepreneurship and the U.S. Economy.” http://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm. Accessed July 14, 2016.
2 Jared Meyer. Forbes. July 20, 2016. “Millennials Want To Be Entrepreneurs, So Why Aren’t They Starting Businesses? Part 1.” http://www.forbes.com/sites/jaredmeyer/2015/07/20/millennials-entrepreneurship-starting-businesses/#1c92f54421f9. Accessed July 14, 2016. (Paste link into browser to access article.)
3 Alex Chriss. Entreprenuer.com. Jan. 7, 2016. “Why the Self-Employed Will Finally Have a Bigger Voice in 2016.” https://www.entrepreneur.com/article/254656. Accessed July 14, 2016.
4 Paula Di Rita Wishart. Inside Higher Ed. July 11, 2016. “Cultivating a Career Calling.” https://www.insidehighered.com/advice/2016/07/11/how-identify-your-career-calling-essay. Accessed July 14, 2016.
5 Rose Leadem. Entreprenuer.com. May 19, 2016. “9 Low-Cost Business Ideas for College Students.” https://www.entrepreneur.com/slideshow/278674. Accessed July 14, 2016.
6 Lydia Dishman. Fast Company. May 19, 2016. “This Is The State Of Entrepreneurship In 2016.” http://www.fastcompany.com/3060037/the-future-of-work/this-is-the-state-of-entrepreneurship-in-2016. Accessed July 14, 2016.
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